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$30,000, then a 1.6-percent maintenance cost would equal $480.
Relatively and comparably, the $100,000 and $480 appear, at least
in size, to represent an incidental as opposed to a major repair,
improvement, or procedure.8
Petitioners also emphasize that the maintenance procedures
take from 10 to 12 days and that the procedures are performed
during off-peak season, whereas complete overhauls are performed
by third parties and the engine is removed from the towboat
during a 3- to 5- month process. Accordingly, there is a
substantial time differential between petitioners’ procedures and
a complete overhaul. By comparison, up to 5 months of towboat
revenue could be lost during an overhaul.
We think it is significant that petitioners perform the
procedures at a time when the engines are completely serviceable
and the purpose of performing the procedures is to keep the
towboat engines in good operating condition. This is in contrast
to the cases relied on by respondent where the property was not
serviceable and had to be replaced or completely rebuilt or
overhauled. For example, respondent relies on Ruane v.
7(...continued)
cost of removal, installation, and refitting a new or rebuilt
engine.
8 In that regard, towboats are operated about 8,000 hours
per year, whereas an automobile, for example, would generally be
operated for substantially fewer hours annually. Accordingly,
the cost of normal maintenance for a towboat should be
comparatively larger in a shorter period of time.
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